contribution margin

(redirected from Contribution Margins)

Contribution margin

The difference between variable revenue and variable cost.

Contribution Margin

The profit a company makes on a product calculated by subtracting its variable revenues from its variable costs. Because variable revenues and costs are largely dependent on the business cycle, a company with a high contribution margin is likely to have an even higher margin during economic expansion.

contribution margin

The price at which a firm sells its product less the variable cost of producing the product. A company with a large contribution margin is likely to experience substantial profit increases during an economic upswing.
References in periodicals archive ?
It will also improve the company's overall contribution margins.
The resulting effects on the contribution margins of the two products are shown in Figure 3.
Contract award: the ikk-west requires an analysis software that allows comprehensive analysis of all existing social data, in particular the morbi-rsa relevant data is possible and also insured relative contribution margins can be determined.
5) Townsley (1993) writes that small independent colleges and universities are successful when their leaders are "aware of the central role that contribution margins have upon programs and upon the scale of the administration and student services" (p.
As a result, CBD will be able to focus on projects in its current pipeline that have potential net contribution margins of over 10%.
Key empirical questions concern the extent of variance across hospitals in costs, payments, and contribution margins for privately insured patients; the magnitude of the differentials for Medicare and privately insured patients; and the influence of local market structure on hospital economic performance.
Contribution Margins per bushel under Scenario #1 | Selling price per bushel AA yellow corn $5.
They demonstrate that contribution margins are the sum of a standard contribution margin plus a set of variances on gross price, payer mix, collection rate and volume of care.
2) Cases in which implant charges or supplies exceeded $10,000 were found to have contribution margins as low as $15 per hour.
Although this strategy increased our contribution margins from the second quarter, it did affect our CNG sales where lower margin work was deferred until later quarters as we continue to work on further production efficiencies and reduction in our raw material costs.
Credit management can take a more active role in effective negotiation by understanding company direction, desired contribution margins, and their role in effecting net income.

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